The local currency left this week’s foreign currency auction held on the 4th of April 2021, ZW$0.00031 cents stronger against the greenback than its value held at last week’s auction. This week a single unit of the United States currency will trade for ZW$84.397 whilst last week’s auction saw it trade for ZW$84.40 as it depreciated against the USD.
The total number of bids accepted this week were 334 from total bids of 397, resulting in 63 bids being rejected for various reasons. The total amount allotted fell sharply as it decreased by US$10.52 million to settle at US$25.25 million from US$35.77 million allotted in last week’s auction. The lowest rate allotted remained at ZW$82 for US$1 evidencing the consistent demand for the greenback within the Zimbabwean economy.
With a country that imports virtually everything, it comes as no surprise as Raw Materials got US$11.53 million, Machinery and Equipment was allotted US$5.09 million. Fuel and Gas and Energy was given US$1.4 million as Retail and Distribution got allotted US$1.6 million.
Services which include divestments, school fees and repatriations got US$2 million as Pharmaceuticals and Consumables got allotted US$1.2 million and US$2.18 million respectively. Lastly it was Paper and Packaging which got $0.36 million.
Reserve money, which refers to currency in circulation plus commercial banks deposits with the central bank, declined by ZW$99.09 million to ZW$20.77 billion as at week ending 26 March 2021 from ZW$20.87 billion in the previous week, the central bank has said.
This was largely due to a decrease of ZW$264.16 million in banks’ liquidity, according to the Reserve Bank of Zimbabwe (RBZ).
Currency in circulation rose by ZW$1.42 million and an increase of ZW$163.64 million in banks’ required reserves – Harare